Sunday, September 25, 2011

Tax compliance not so simple for vacation rentals

The county has begun using new software to identify and collect unpaid sales and accommodations taxes from vacation rental owners, but some owners say they'd be happy to pay if they only knew how.

Complying with local municipal sales and accommodation tax and licensure requirements may not be as simple as it sounds, some owners say.

“I truly want to get into compliance,” said one vacation rental owner, who asked that his name be withheld. “It hasn't been clear … who is trying to collect the tax. Is it the county? Is it Breckenridge? Is it the state? I've had a business license, but there are no instructions, rules or anything about what you do. Actually collecting and delivering the taxes to somebody, that wasn't part of the explanation.”

Owners of vacation rental properties can contact their local municipality's clerk or finance offices for more information on how to comply with local tax and licensure laws. Private companies, like Hotspot Tax Services out of Denver, can also help individuals understand and file taxes on their short-term rentals.

From the Summit Daily News